DBS, Franklin Templeton, and Ripple have partnered to offer accredited and institutional investors innovative trading and lending solutions through tokenised money market funds on the XRP Ledger blockchain, using stablecoins like Ripple USD (RLUSD). Formalized via a memorandum of understanding, the collaboration combines DBS’s position as one of Asia’s largest financial institutions, Franklin Templeton’s expertise in investment management, and Ripple’s leadership in enterprise blockchain solutions. This initiative reflects the growing institutional interest in digital assets, with 87% of investors planning allocations to the asset class in 2025.
The partnership enables investors to acquire Franklin Templeton’s sgBENJI token on DBS Digital Exchange using RLUSD. The sgBENJI token represents Franklin Templeton’s tokenised money market fund, Franklin Onchain U.S. Dollar Short-Term Money Market Fund. This setup allows clients to trade between RLUSD and sgBENJI tokens, providing portfolio stability, quick rebalancing capabilities, and the opportunity to earn yield even during volatile market conditions.
In a subsequent phase, DBS plans to explore the use of sgBENJI tokens as collateral to unlock liquidity. Investors may obtain credit from the bank through repurchase transactions (repos) or access third-party lending platforms, with DBS acting as the custodian of pledged collateral. This approach provides investors with additional liquidity while ensuring security and trust for both clients and lenders.
To strengthen the tokenisation ecosystem, Franklin Templeton will issue sgBENJI on the XRP Ledger, chosen for its efficiency, speed, and low transaction costs. Leveraging this enterprise-grade blockchain enhances interoperability across networks and facilitates the trading and settlement of high-volume, low-latency tokenised assets, meeting institutional investors’ operational requirements.
The partnership highlights the transformative potential of tokenised securities in digital asset markets. DBS emphasizes that the initiative strengthens their leadership in Asia’s blockchain ecosystem while providing clients with trusted, institutional-grade solutions. Franklin Templeton notes that blockchain and tokenisation open up innovative financial use cases, while Ripple underlines that the integration of RLUSD with tokenised money market funds offers seamless portfolio rebalancing, enhanced liquidity, and real-world capital efficiency for institutional investors.
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